This invention relates to providing a system for improved decision making for buying and selling in financial markets. More particularly this invention relates to providing a system for providing improved reliability for early confirmation of changes in market trends for stocks, commodities, indexes, currencies or financial market derivatives, collectively referred to as Market Vehicles.
Technical analysis, which involves the evaluation of stocks based on historical market statistics and chart patterns, has become extremely popular in recent years. During the 1990's, a wide variety of tools became available to day traders and other types of retail traders. In summary, the objective of these tools is to provide the earliest possible identification of changes in market direction, up or down. These market analysis tools are often based on various statistical methods, such as J. Welles Wilder's directional movement index (DMI), critical path method, real time swing bar methods, etc. These methods and others provide a wealth of information to the trader, but they tend to be complicated and in some cases not completely real time in their displays and calculations. Additionally, market forces such as buying pressure and selling pressure are not completely evaluated or displayed meaningfully to the trader.
Additionally, the existing tools do not automatically provide the ability to evaluate market trends across more than one timeframe simultaneously. Thus, traders must manually evaluate different timeframes to confirm indications of changes in direction or continuation of a current trend.
Thus, it is highly desirable to provide a system for providing improved visual presentation of market trends and trend changes and automatic evaluation of market trends and trend changes over multiple timeframes. It is also highly desirable to provide training in decision-making for traders using real-time market analysis software.